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1 United States Government Accountability Office Report to Congressional Requesters May 2014 SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION Assessing the Relationship between Education and the Workforce GAO

2 Highlights of GAO , a report to congressional requesters May 2014 SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION Assessing the Relationship between Education and the Workforce Why GAO Did This Study Federal STEM education programs help enhance the nation s global competitiveness by preparing students for STEM careers. Researchers disagree about whether there are enough STEM workers to meet employer demand. GAO was asked to study the extent to which STEM education programs are aligned with workforce needs. GAO examined (1) recent trends in the number of degrees and jobs in STEM fields, (2) the extent to which federal postsecondary STEM education programs take workforce needs into consideration, and (3) the extent to which federal K-12 STEM education programs prepare students for postsecondary STEM education. GAO analyzed trends in STEM degrees and jobs since 2002 using 3 data sets the Integrated Postsecondary Education Data System, American Community Survey, and Occupational Employment Statistics and surveyed 158 federal STEM education programs. There were 154 survey respondents (97 percent): 124 postsecondary and 30 K- 12 programs. In addition, GAO conducted in-depth reviews including interviews with federal officials and grantees of 13 programs chosen from among those with the highest reported obligations. What GAO Recommends GAO makes no recommendations in this report. GAO received technical comments from the Departments of Education, Energy, and Health and Human Services; National Science Foundation; and Office of Management and Budget. View GAO For more information, contact Melissa Emrey-Arras at (617) or What GAO Found Both the number of science, technology, engineering, and mathematics (STEM) degrees awarded and the number of jobs in STEM fields increased in recent years. The number of degrees awarded in STEM fields grew 55 percent from 1.35 million in the academic year to over 2 million in the academic year, while degrees awarded in non-stem fields increased 37 percent. Since 2004, the number of STEM jobs increased 16 percent from 14.2 million to 16.5 million jobs in 2012, and non-stem jobs remained fairly steady. The trends in STEM degrees and jobs varied across STEM fields. It is difficult to know if the numbers of STEM graduates are aligned with workforce needs, in part because demand for STEM workers fluctuates. For example, the number of jobs in core STEM fields, including engineering and information technology, declined during the recession but has grown substantially since then. Science, Technology, Engineering, and Mathematics (STEM) Fields Almost all of the 124 federal postsecondary STEM education programs that responded to GAO s survey reported that they considered workforce needs in some way. For example, the most common program objective was to prepare students for STEM careers. Some of these programs focused on occupations they considered to be in demand and/or related to their agency s mission. Many postsecondary programs also aimed to increase the diversity of the STEM workforce or prepare students for innovation. Most STEM programs reported having some outcome measures in place, but GAO found that some programs did not measure an outcome directly related to their stated objectives. As GAO recommended in 2012, the National Science and Technology Council recently issued guidance to help agencies better incorporate STEM education outcomes into their performance plans and reports. As agencies follow the guidance and focus on the effectiveness of the programs, more programs may measure outcomes directly related to their objectives. Of the 30 kindergarten through 12 th grade (K-12) STEM education programs responding to GAO s survey, almost all reported that they either directly or indirectly prepared students for postsecondary STEM education. For example, one program worked closely with students to provide math and science instruction and supportive services to prepare them for postsecondary STEM education, while another supported research projects intended to enhance STEM learning. United States Government Accountability Office

6 Figure 24: Average Annual Wage in Science, Technology, Engineering, and Mathematics (STEM) Occupations, 2004 to Figure 25: Percentage of Workers in Science, Technology, Engineering, and Mathematics (STEM) and Non-STEM Occupations by Educational Background, Figure 26: Unemployment Rates in Science, Technology, Engineering, and Mathematics (STEM) and Non-STEM Occupations, by Educational Background, 2009 to Figure 27: Educational Backgrounds of Workers Ages 22 or Older in Selected Non-Science, Technology, Engineering, and Mathematics (STEM) Occupations, Abbreviations ACS American Community Survey CIP Classification of Instructional Program IPEDS Integrated Postsecondary Education Data System IT Information technology K-12 Kindergarten-12th grade OES Occupational Employment Statistics SOC Standard Occupational Classification STEM Science, technology, engineering, and mathematics This is a work of the U.S. government and is not subject to copyright protection in the United States. The published product may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Page iv

7 441 G St. N.W. Washington, DC May 8, 2014 The Honorable John Kline Chairman Committee on Education and the Workforce House of Representatives The Honorable Richard Hanna House of Representatives The Honorable Joseph Heck House of Representatives The Honorable Duncan D. Hunter House of Representatives Science, technology, engineering, and mathematics (STEM) education programs can serve an important role both by helping to prepare students and teachers for careers in STEM fields and by enhancing the nation s global competitiveness. As part of this effort, many federal agencies administer STEM education programs. In addition to the federal effort, state and local governments, universities and colleges, and the private sector have also developed programs that provide opportunities for students to pursue STEM education and occupations. The current administration maintains that a strong educational pipeline creating future STEM workers is important to ensure that the United States remains competitive with other highly technological nations. Researchers disagree about the sufficiency of the current supply of STEM workers. While some researchers have concluded that the United States has a sufficient supply of STEM workers, 1 others have found that the educational system is not producing enough STEM graduates to fill the jobs available in STEM occupations 2 or in the increasing number of jobs 1 See, for example, Hal Salzman, Daniel Kuehn, and B. Lindsay Lowell, Guestworkers In The High-Skill U.S. Labor Market: An Analysis Of Supply, Employment, and Wage Trends, Economic Policy Institute Briefing Paper #359 (Washington, D.C.: April 24, 2013). 2 See, for example, Microsoft, A National Talent Strategy: Ideas for Securing U.S. Competitiveness and Economic Growth. (September 2012). Page 1

8 in other fields that may require STEM competencies (such as analytical skills). 3 In light of this disagreement, we were asked to review the alignment between STEM and workforce needs. Specifically, we reviewed (1) recent trends in the number of degrees and jobs in STEM fields, (2) the extent to which federal postsecondary STEM education programs take workforce needs into consideration, and (3) the extent to which federal kindergarten-12th grade (K-12) STEM education programs prepare students for postsecondary STEM education. To address our first objective, we analyzed three federal data sources to examine trends in STEM degrees and jobs over the past decade: (1) the Department of Education s Integrated Postsecondary Education Data System to examine trends in STEM degrees, (2) the Bureau of Labor Statistics Occupational Employment Statistics data to examine employment and wage trends among STEM workers, and (3) the Census Bureau s American Community Survey data to examine unemployment rates of STEM workers and the relationships between educational background and occupation among STEM workers. We determined that these data were sufficiently reliable for the purposes of our report by reviewing relevant documentation and conducting electronic testing of the data. We also conducted a regression analysis with the American Community Survey data to examine differences in wages and unemployment rates between STEM and non-stem workers, controlling for some demographic details. To address our other objectives, we reviewed relevant federal laws and regulations and conducted and analyzed the results of a survey. We surveyed 158 K-12 and postsecondary STEM education programs about how they address STEM workforce needs and prepare students for future STEM education or careers. A total of 154 federal STEM education programs responded to our survey, representing a 97 percent response rate. 4 Among the respondents, we identified 124 programs reporting 3 See, for example, Anthony P. Carnevale, Nicole Smith, and Michelle Melton, STEM: Science, Technology, Engineering, Mathematics, Georgetown University Center on Education and the Workforce (October 20, 2011). 4 See appendix I for more information about the four programs that did not respond to our survey. The survey also updated some of the descriptive data from our 2012 STEM report: GAO, Science, Technology, Engineering, and Mathematics Education: Strategic Planning Needed to Better Manage Overlapping Programs across Multiple Agencies, GAO (Washington, D.C.: Jan. 20, 2012). Page 2

9 $1.9 billion in fiscal year 2012 obligations that primarily served students and teachers at the postsecondary level, and 30 programs reporting $685 million in fiscal year 2012 obligations that primarily served students and teachers at the K-12 level. 5 To provide more details about some of the highest funded STEM education programs, we conducted a more in-depth review of 13 programs from three agencies: the National Science Foundation, the Department of Education, and the National Institutes of Health at the Department of Health and Human Services. We chose these programs because they were among the largest federal STEM education programs, collectively accounting for 54 percent of the fiscal year 2012 STEM education obligations reported by the 154 programs that responded to our survey. Seven of the selected programs served postsecondary students or institutions and six programs served K- 12 students or teachers. We reviewed documentation from each program, interviewed agency officials, and conducted site visits with program grantees in Austin, Texas, and San Francisco, California, and phone interviews with grantees in Boston, Massachusetts. We conducted this performance audit from January 2013 to April 2014 in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Background STEM Education Definitions The term STEM education refers to teaching and learning in the fields of science, technology, engineering, and mathematics. It includes educational activities across all grade levels from pre-school to post- 5 Amounts obligated for each program for fiscal year 2012 were reported to us by agency officials and we did not independently verify this information. An obligation is a definite commitment that creates a legal liability of the government for the payment of goods and services ordered or received, or a legal duty on the part of the United States that could mature into a legal liability. Payment on these obligations may be made immediately or in the future. An agency incurs an obligation, for example, when it places an order, signs a contract, awards a grant, or purchases a service. See GAO, A Glossary of Terms Used in the Federal Budget Process, GAO SP (Washington, D.C.: Sept. 2005). Page 3

10 doctorate in both formal (e.g., classrooms) and informal (e.g., afterschool programs) settings. 6 In 2012, we reviewed the delivery and effectiveness of federal STEM education programs. As in our 2012 report, for this report we define a federally-funded STEM education program as a program funded in a designated fiscal year 7 by allocation or congressional appropriation that includes one or more of the following as a primary objective: 8 attract or prepare students to pursue classes or coursework in STEM areas through formal or informal education activities, attract students to pursue degrees (2-year, 4-year, graduate, or doctoral) in STEM fields through formal or informal education activities, provide training opportunities for undergraduate or graduate students in STEM fields (this can include grants, fellowships, internships, and traineeships that are targeted to students; we do not consider general research grants to researchers that may hire a student to work in the lab to be a STEM education program), attract graduates to pursue careers in STEM fields, improve teacher education in STEM areas for teachers and those studying to be teachers, improve or expand the capacity of K-12 schools or postsecondary institutions to promote or foster education in STEM fields, or conduct research to enhance the quality of STEM education programs provided to students. There is no commonly used definition of fields that are considered STEM. For this report, we use a comprehensive definition of STEM that includes 6 Informal education programs support activities provided by a variety of organizations that offer students learning opportunities outside of formal schooling through contests, science fairs, summer programs, and other means. Outreach programs targeted to the general public (either adults or children) are not included. 7 GAO In our 2012 report, we considered federal STEM education programs funded in fiscal year In the current report, we consider those funded in fiscal year The current administration defines a STEM education investment (it does not use the word program ) as a federally funded STEM education activity that has a dedicated budget of $300,000 or above and staff to manage the budget. Our definition does not have a stated budget minimum. See Committee on STEM Education, National Science and Technology Council, Federal Science, Technology, Engineering, and Mathematics (STEM) Education 5-Year Strategic Plan (Washington, D.C.: May 2013). Page 4

11 three STEM categories: Core STEM, Healthcare STEM, and Other STEM (see fig. 1). 9 We present our findings for the three categories combined and for each of three STEM categories. See our description of the relevant data sets in appendix I for an explanation of how we classified fields of study and occupations into these STEM categories in our data analysis. Figure 1: Science, Technology, Engineering, and Mathematics (STEM) Fields Federal STEM Education Programs and Policy The Committee on STEM Education is the interagency coordination body for STEM education in the federal government (see fig. 2). 9 We based our categories on a categorization of STEM put forth by the Standard Occupational Classification Policy Committee presented in Options for Defining STEM (Science, Technology, Engineering, and Mathematics) Occupations Under the Standard 2010 Occupation Classification System, Standard Occupational Classification Policy Committee Recommendation to the Office of Management and Budget (August 2012). In 2011, the Standard Occupational Classification Policy Committee, a federal inter-agency committee responsible for recommending updates to the classification system used in occupational data, developed several options for defining STEM occupations. These included a categorization into the following four areas: (1) life and physical science, engineering, mathematics, and information technology occupations, (2) social science occupations, (3) architecture occupations, and (4) health occupations. Page 5

12 Figure 2: Science, Technology, Engineering, and Mathematics (STEM) Education Policy a The Committee on STEM Education coordinates federal programs and activities in support of STEM education, as required by the America COMPETES Reauthorization Act of 2010 (Pub. L. No , 101(a), 124 Stat. 3982, 3984 (2011)). The Act also approved funding for some STEM education programs and addressed coordination and oversight issues, including those associated with the coordination and potential duplication of federal STEM education efforts. Specifically, the Act required the Director of Office of Science and Technology Policy to establish a committee under the National Science and Technology Council to inventory, review, and coordinate federal STEM education programs, among other things. Federal STEM education programs have been created in two ways directly by law or through agencies broad statutory authority to carry out their missions. In our 2012 STEM report, 10 we reported that in fiscal year 2010, 13 federal agencies administered 209 programs to increase knowledge of STEM fields and attainment of STEM degrees. These agencies, listed below in Table 1, continued to administer federal STEM education programs in fiscal year GAO Page 6

13 Table 1: Agencies Administering Science, Technology, Engineering, and Mathematics (STEM) Education Programs Agency Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of the Interior Department of Transportation Environmental Protection Agency National Aeronautics and Space Administration National Science Foundation Nuclear Regulatory Commission Mission To provide leadership on food, agriculture, natural resources, and related issues based on sound public policy, the best available science, and efficient management To promote job creation, economic growth, sustainable development, and improved standards of living for all Americans by working in partnership with businesses, universities, communities, and our nation s workers To provide the military forces needed to deter war and to protect the security of our country To promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access To ensure America s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions To enhance the health and well-being of Americans by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services To ensure a homeland that is safe, secure, and resilient against terrorism and other hazards To protect and manage the nation s natural resources and cultural heritage; to provide scientific and other information about those resources; and to honor its trust responsibilities or special commitments to American Indians, Alaska Natives, and affiliated island communities To ensure a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future To protect human health and the environment To drive advances in science, technology, and exploration to enhance knowledge, education, innovation, economic vitality, and stewardship of Earth To promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense; and for other purposes To ensure the adequate protection of public health, safety, and the environment while promoting the common defense and security Source: GAO review of agencies websites and strategic plans. In our 2012 report, we found that in fiscal year 2010, 83 percent of the programs we identified overlapped to some degree with at least 1 other program by offering similar services to similar target groups in similar STEM fields to achieve similar objectives. Although those programs may not be duplicative, we reported that they were similar enough that they needed to be well coordinated and guided by a robust strategic plan. We also found that federal agencies limited use of performance measures and evaluations may have hampered their ability to assess the effectiveness of individual programs as well as the overall federal STEM education effort. We recommended that as the Office of Science and Technology Policy leads the government s STEM education strategic Page 7

14 planning effort, it should work with agencies to better align their activities with a government-wide strategy, develop a plan for sustained coordination, identify programs for potential consolidation or elimination, and assist agencies in determining how to better evaluate their programs. The Office of Science and Technology Policy has taken steps to address some of our recommendations. Regarding our recommendation on potential elimination or consolidation of programs, the Committee on STEM Education released its interim strategic planning progress report in February 2012, which noted that STEM education programs had been identified to be potentially overlapping and encouraged agencies to streamline programs where appropriate. 11 In addition, the President s fiscal year 2014 budget called for a major restructuring of federal STEM education programs through the consolidation of programs and the realignment of STEM education activities. 12 Since our prior report on STEM, the number of STEM education programs dropped from 209 in 2010 to158 in The President s fiscal year 2015 budget request seeks to continue these efforts and states that agencies should focus on internal consolidations and eliminations while funding their most effective programs. 13 Regarding our recommendation on evaluations, in May of 2013 the Committee on STEM Education released its 5-year Strategic Plan, which included guidance to agencies in developing evaluations for STEM education programs. The plan also laid out five broad priority areas: 14 Improve STEM instruction; Increase and sustain youth and public engagement in STEM; Enhance STEM experiences of undergraduate students; 11 Committee on STEM Education, National Science and Technology Council, Coordinating Federal Science, Technology, Engineering, And Mathematics (STEM) Education Investments: Progress Report (Washington, D.C.: February 2012); Committee on STEM Education, National Science and Technology Council, Federal Science, Technology, Engineering, and Mathematics (STEM) Education 5-Year Strategic Plan. (Washington, D.C.: May 2013). 12 Office of Management and Budget, Budget of the United States Government, Fiscal Year 2014 (Washington, D.C.: April 2013). 13 Office of Management and Budget, Budget of the United States Government, Fiscal Year 2015 (Washington, D.C.: March 2014). 14 We list these priority areas as stated in the 5-year Strategic Plan. Page 8

15 Better serve groups historically under-represented in STEM fields; and Design graduate education for tomorrow s STEM workforce. In addition, in July 2013, a joint Office of Science and Technology Policy/ Office of Management and Budget memo included guidance to agencies on how to align their programs and budget submissions beginning with the budget submission for 2015 with the goals of the STEM Education 5-Year Strategic Plan. The guidance includes language directing the agencies to prioritize programs that use evidence to guide program design and implementation and to define appropriate metrics and improve the measurement of outcomes. Furthermore, in the President s 2015 budget submission, the administration stated that improving STEM education by implementing the 5-year Strategic Plan is a cross-agency priority goal. As a result of this designation, the Office of Management and Budget must review on a quarterly basis agencies progress in meeting this goal. STEM Degrees and Jobs Are Increasing, but Their Alignment Is Difficult to Determine While Degrees Have Increased in Most STEM Fields, Some Fields Have Grown More than Others Overall, postsecondary degrees awarded in STEM fields have increased at a greater rate than in non-stem fields during the past decade. 15 The number of STEM degrees awarded increased 55 percent, from 1.35 million degrees awarded in the academic year to over 2 million in the academic year. In comparison, degrees awarded in non-stem fields increased 37 percent in the same time period (see fig. 3). STEM degrees now comprise a larger share of total postsecondary degrees awarded 42 percent in the academic year, up from 39 percent in the academic year. 15 In this report, postsecondary degrees refers to and includes associate s and other degrees awarded below the bachelor s level, bachelor s, master s, postbaccalaureate and post-master s certificates, doctorate, and professional degrees. We include both degrees awarded for first and second majors in our analysis. Our results represent the number of degrees awarded, not the number of individuals who obtained degrees. Page 9

16 Figure 3: Trends in Science, Technology, Engineering, and Mathematics (STEM) and Non-STEM Degrees Awarded Note: This figure presents data on all degrees, including associate s and other degrees below the bachelor s level, bachelor s, master s, postbaccalaureate and post-master s certificates, doctorate, and professional degrees. The numbers shown in this figure include degrees awarded to citizens, non-resident aliens (students in the United States on a visa or temporary basis and do not have the right to remain indefinitely), and resident aliens. However, much of the increase in STEM degrees came from growth in awards of Healthcare degrees, which have doubled over the past decade (see fig. 4). Degrees awarded in Core STEM fields increased at a substantially lower rate (19 percent) than non-stem fields (37 percent). Page 10

17 Degrees awarded in Other STEM fields increased at a greater rate (43 percent) than non-stem fields. 16 Figure 4: Trends in Degrees Awarded in Science, Technology, Engineering, and Mathematics (STEM) Categories Note: This figure presents data on all degrees, including associate s and other degrees below the bachelor s level, bachelor s, master s, postbaccalaureate and post-master s certificates, doctorate, and professional degrees. The numbers shown in this figure include degrees awarded to citizens, non-resident aliens (students in the United States on a visa or temporary basis and do not have the right to remain indefinitely), and resident aliens. 16 When degrees awarded to non-resident aliens are excluded, degrees awarded in core STEM fields increased 18 percent between the and academic years, 100 percent in healthcare fields, and 44 percent in other STEM fields. Overall, degrees awarded to citizens and resident aliens increased 56 percent in STEM fields in this time period and 37 percent in non-stem fields. Degrees awarded to non-resident alien students comprised 4 percent of all degrees awarded in the school year. However, non-resident alien students were more heavily concentrated in core STEM fields, particularly at the graduate level 23 percent of non-resident alien degrees were in core STEM fields at the master s and the doctorate or professional level, compared to 2 percent of degrees awarded to U.S. citizens and residents. See appendix II for further information on STEM degrees awarded to various demographic groups. Page 11

18 The comparatively slower growth in Core STEM fields is due in large part to an 18 percent decline in the number of computer science and information technology (IT) degrees awarded in the past decade. Computer science and IT degrees decreased each year between the and academic years but then increased (see fig. 5). 17 A research association that has examined trends in computer science bachelor s degrees attributes the decline to the dot-com crash Specifically, degrees at the below-bachelor s, bachelor s, and master s level in computer science/it fields declined for 3 to 5 years from the academic year and then increased. Computer science/it degrees at the post-bachelor s certificate level was fairly stable (at about 800 to 900 degrees awarded) from to period but increased to about 1,200 degrees awarded in the and academic years. Computer science/it degrees at the doctorate level steadily increased through the past decade, from about 800 degrees awarded in to about 1,700 in the academic year. Overall trends in computer science/it degrees awarded were similar for non-resident alien students and citizens and residents computer science/it degrees declined 17 percent among non-resident aliens and 19 percent among citizens and residents from the to academic years. Citizens and residents received the large majority of computer science/it degrees awarded at the less than bachelor s (99 percent), bachelor s (95 percent), and post-bachelor s certificate levels (84 percent) in the academic year. At the graduate levels, sizable percentages of computer science/it degrees were awarded to non-resident alien students (44 percent of master s degrees and 51 percent of doctorate degrees). 18 Stuart Zweben, Computing Degrees and Enrollment Trends from the CRA Taulbee Survey, Computing Research Association (Washington, D.C.). Page 12

19 Figure 5: Trends in Computer Science and Information Technology Degrees Awarded Note: Post-bachelor s certificates includes postbaccalaureate and post-master s certificates. The numbers shown in this figure include degrees awarded to citizens, non-resident aliens (students in the United States on a visa or temporary basis and do not have the right to remain indefinitely), and resident aliens. Aside from degrees awarded in the computer science/it field, degrees awarded in all of the other STEM fields have increased throughout the past decade. Among the Core STEM fields, degrees awarded in the physical sciences, life sciences, and mathematics have grown at a greater rate than non-stem fields (see fig. 6). Degrees awarded in Page 13

20 engineering have also increased, though at a slightly lower rate than non- STEM fields (37 percent compared to 39 percent). 19 Figure 6: Percentage Change in Postsecondary Degrees Awarded from the to Academic Years for Select Science, Technology, Engineering, and Mathematics (STEM) Fields Note: This figure presents data on all degrees, including associate s and other degrees below the bachelor s level, bachelor s, master s, postbaccalaureate and post-master s certificates, doctorate, and professional degrees. The numbers shown in this figure include degrees awarded to citizens, non-resident aliens (students in the United States on a visa or temporary basis and do not have the right to remain indefinitely), and resident aliens. 19 Growth in degrees for the Core STEM field of engineering or science technician has been relatively slow. These degrees prepare students for jobs like industrial production technicians, telecommunications technicians, solar energy technicians, nuclear and industrial radiologic technicians. Degrees in these fields, which are largely at the belowbachelor s level, increased only 10 percent in the past decade (see fig 5). Similar to computer science/it degrees, the number of technician degrees awarded declined from the to academic years, but has been increasing since then. Page 14

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